The company exhibits a chronic liquidity crisis, with cash reserves dropping to $645,939 from a 2022Q4 peak of $9.2 million.
| Cash from Operations | -2.43M | -3.04M | -3.16M | -4.17M | -1.04M | -1.6M | -289.4K | 522.63K |
| Operating CF Margin % | -54.07% | -40.53% | -49.09% | -34.31% | -8.28% | -14.25% | -2.6% | 3.63% |
| Operating CF Growth % | 20.12% | 3.83% | 24.16% | -301.44% | 35.02% | -452.51% | -155.37% | - |
| Net Income | -19.35M | -3.69M | -3.5M | -1.66M | -1.39M | -1.02M | -1.28M | -1.41M |
| Depreciation & Amortization | 788.72K | 797.66K | 693.53K | 303.27K | 259.12K | 265.69K | 283.9K | 304.51K |
| Stock-Based Compensation | 0 | 0 | 667.02K | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 13.84M | 0 | 0 | 105.2K | 0 | 0 | 0 | -1.04M |
| Working Capital Changes | 2.29M | -149.45K | -1.02M | -2.92M | 88.43K | -849.32K | 705.34K | 1.63M |
| Change in Receivables | -93.51K | 385.6K | 1.14M | -429.25K | -333.55K | -154.85K | 184.37K | 875.96K |
| Change in Inventory | -328.16K | -7.65K | -586.55K | 535.18K | -712.85K | -683.7K | 235.97K | 957.2K |
| Change in Payables | 275.84K | -71.82K | -67.94K | -1.63M | 530.22K | 52.94K | 171.43K | -746.79K |
| Cash from Investing | -3.3K | -115.16K | -1.36M | -4.18M | -9.76K | -221.76K | -112.75K | -112.76K |
| Capital Expenditures | -23.9K | -115.16K | -1.36M | -4.18M | -9.76K | -221.76K | -112.75K | -112.76K |
| CapEx % of Revenue | 0.53% | 1.53% | 21.11% | 34.39% | 0.08% | 1.98% | 1.01% | 0.78% |
| Acquisitions | 20.6K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 1.8M | -44.56K | -154.98K | 17.4M | 876.33K | 1.05M | 204.7K | 379.01K |
| Debt Issued (Net) | 1.38M | -44.56K | -154.98K | -650.57K | 158.38K | 895.54K | -549.24K | 379.01K |
| Equity Issued (Net) | 422K | 0 | 0 | 18.05M | 717.95K | 153.85K | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 0 | 0 | 0 | 0 | 753.94K | 0 |
| Net Change in Cash | -634.97K | -3.2M | -4.68M | 9.03M | -171.31K | -767.44K | -197.69K | 787.02K |
| Free Cash Flow | -2.45M | -3.16M | -4.52M | -8.35M | -1.05M | -1.82M | -402.16K | 409.87K |
| FCF Margin % | -54.61% | -42.06% | -70.2% | -68.7% | -8.36% | -16.23% | -3.61% | 2.84% |
| FCF Growth % | 22.28% | 30.2% | 45.84% | -696.45% | 42.4% | -352.74% | -198.12% | - |
| FCF per Share | -1.20 | -1.75 | -2.50 | -4.62 | -0.58 | -1.01 | -0.22 | 0.23 |
| FCF Conversion (FCF/Net Income) | 0.13x | 0.82x | 0.90x | 2.52x | 0.75x | 1.57x | 0.23x | -0.37x |
| Interest Paid | 0 | 16.56K | 18.86K | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 55.09K | 125.07K | 0 | 0 | 0 | 0 | 0 |
Imminent liquidity and insolvency
Based on reported financial statements, ILAG exhibits a chronic inability to convert net income into operating cash flow, with the most recent quarter showing a net loss of $14.0 million while operating cash flow remained negative at $690.2K, underscoring a fundamental breakdown in earnings quality.
The persistent gap between net losses and operating cash flow suggests that non-cash charges and working capital adjustments are masking the severity of the underlying cash burn. Investors should monitor whether the company's reliance on accounting accruals is sustainable given the lack of positive cash generation.
As reported in financial statements, ILAG's free cash flow has remained consistently negative over the last ten quarters, with the most recent period recording a $693.7K outflow, reflecting a structural inability to fund operations through core business activities without external capital support.
The consistent negative FCF margins, which reached -31.7% in the latest quarter, indicate that the business model is currently value-destructive. This trajectory suggests that the company may be forced to seek dilutive financing to maintain even minimal operational levels.
According to recent SEC filings, ILAG's capital expenditure remains low in absolute terms, yet the company's capital intensity relative to revenue has shown erratic spikes, such as the 12.7% ratio observed in 2023Q4, which appears disproportionate given the ongoing contraction in top-line performance.
The minimal investment in fixed assets suggests that management is attempting to preserve cash, yet the lack of meaningful growth capex implies a failure to modernize or expand production capabilities. This strategy appears to be a defensive reaction to liquidity constraints rather than a deliberate capital allocation choice.
Based on the provided data, ILAG's working capital changes have been highly inconsistent, swinging from a $2.4 million inflow in 2025Q4 to a $1.2 million outflow in 2023Q4, indicating significant instability in the company's ability to manage its cash conversion cycle effectively.
These erratic swings in working capital suggest potential issues with inventory management or collection efficiency, which are critical for a hardware manufacturer. The lack of a predictable cash cycle may indicate that the company is struggling to align its production schedules with actual customer demand.
As indicated by the historical data, the cumulative gap between net income and operating cash flow has widened significantly over the past several years, with the company reporting deep net losses that are not fully reflected in the cash flow statement, suggesting potential accounting distortions.
The persistent divergence between bottom-line losses and cash outflows warrants further investigation into the nature of the company's operating expenses and non-cash adjustments. This trend may imply that the company's reported financial position is significantly more fragile than the net income figures alone would suggest.
Quick answers to the most common questions about buying ILAG stock.
Intelligent Living Application Group Inc. (ILAG) generated $-2.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Intelligent Living Application Group Inc. (ILAG) reported negative free cash flow of $2.5M in 2025, indicating capital requirements exceeded cash from operations.
Intelligent Living Application Group Inc. (ILAG) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.